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City of Muskegon
City Commission Meeting
Minutes
April 11, 2023, 5:30 pm
Muskegon City Hall
933 Terrace Street, Muskegon, MI 49440
Present: Mayor Ken Johnson
Commissioner Rachel Gorman
Commissioner Rebecca St.Clair
Vice Mayor Willie German, Jr.
Commissioner Michael Ramsey
Commissioner Teresa Emory
Absent: Commissioner Eric Hood
Staff Present: City Manager Jonathan Seyferth
City Clerk Ann Meisch
City Attorney John Schrier
Deputy City Clerk Kimberly Young
1. Call To Order
The Regular Meeting of the City of Muskegon was held at City Hall, 933 Terrace
Street, Muskegon, Michigan at 5:30 p.m. on Tuesday, April 11, 2023.
2. Prayer
Pastor Jeremy Lenertz, First Wesleyan Church, opened the meeting with prayer.
3. Pledge of Allegiance
The Pledge of Allegiance to the Flag was recited by the Commission and the
public.
4. Roll Call
As recorded above
5. Honors, Awards, and Presentations
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6. Public Comment on Agenda Items
Public comments were received.
7. Consent Agenda
Action No. 2023-50
Motion by: Commissioner Ramsey
Second by: Vice Mayor German
To accept the consent agenda as presented, minus item 7B.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair, Vice
Mayor German, Commissioner Ramsey, and Commissioner Emory
Absent (1): Commissioner Hood
MOTION PASSES (6 to 0)
7.a Approval of Minutes - City Clerk
To approve the minutes of the March 13, 2023 Worksession and March
14, 2023 Regular Meeting.
STAFF RECOMMENDATION: To approve the minutes.
7.c Amendments to the zoning ordinance, marihuana processing -
Planning - 2ND READING REQUIRED
Staff initiated request to amend the B-2, B-4, I-1, I-2 and MC sections of
the zoning ordinance to allow marihuana processing facilities without
extraction methods classified as hazardous under the Michigan Building
Code as a special use permitted. The Planning Commission
recommended approval of the amendments by a 7-0 vote at their March
16, 2023 meeting.
STAFF RECOMMENDATION: To approve the request to amend the B-2,
B-4, I-1, I-2 and MC sections of the zoning ordinance to allow marihuana
processing facilities without extraction methods classified as hazardous
under the Michigan Building Code as a special use permitted.
7.d Rezoning a portion of 560 Mart St - Planning - 2ND READING
REQUIRED
Request to rezone a portion of the property at 560 Mart St from B-2,
Convenience & Comparison Business to WM-Waterfront Marine, by West
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MI Dock & Market. The Planning Commission recommended approval of
the rezoning by a 7-0 vote at their March 16 meeting.
STAFF RECOMMENDATION: To approve the request to rezone a portion
of 560 Mart St from B-2 to Waterfront Marine.
7.e Rezoning of 1163 Terrace St - Planning - 2ND READING REQUIRED
Request to rezone the property at 1163 Terrace St from R-3 Residence to
B-2, Convenience & Comparison Business, by Ryan Burns. The Planning
Commission recommended approval of the rezoning by a 7-0 vote at their
March 16 meeting.
STAFF RECOMMENDATION: To approve the rezoning of 1163 Terrace
St from R-3 to B-2.
7.f Deficit Elimination Plan - Brownfield Redevelopment Authorities -
Finance
To approve the Deficit Elimination plan and resolution for the Brownfield
Redevelopment Authority (combined) and direct staff to submit plan to the
State of Michigan.
At June 30, 2022 the Brownfield Redevelopment Authority (combined) had
a $64,211.00 deficit. Act 275 of Public Acts of 1980 requires the City to
formulate a deficit elimination plan and submit it to the Michigan
Department of Treasury. The deficit elimination plan and resolution for the
Brown Field Redevelopment are attached.
The State wanted more clarification on the deficit with a different layout,
plus I extended the plan one more year.
STAFF RECOMMENDATION: To approve the deficit elimination
resolution for the Brownfield Redevelopment.
7.g Emergency Management Resolution - Pubic Safety
We are asking for resolution to the Emergency Management Resolution
as there are name/job updates. The City of Muskegon is incorporated into
the Muskegon County Emergency Management Program. By being part
of the county Emergency Management Program, the City of Muskegon
and the County of Muskegon have certain responsibilities to each other.
This Support Emergency Operations Plan was developed to identify the
responsibilities between the City of Muskegon and the County of
Muskegon in regards to pre-disaster emergency management activities.
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STAFF RECOMMENDATION: To approve and the appropriate
department heads, city mayor and city clerk to sign the 2023 Emergency
Management Resolution as is with the updated names and jobs titles.
7.h Sale of 740 Leonard Avenue - City Manager
Staff is requesting approval of a purchase agreement for 740 Leonard
Avenue. 740 Leonard Avenue was constructed through the agreement
with Rudy Briggs to construct infill housing with ARPA funding. The offer
is for full asking price with no seller concessions. Please note that the
offer is contingent on the sale of the buyer’s current residence. 740
Leonard will remain on the market until the contingency is removed.
STAFF RECOMMENDATION: To approve the purchase agreement for
740 Leonard Avenue.
7.b Opioid Settlement, Round 2 - City Manager
This is the second round of Opioid settlement dollars the City will be
receiving. This settlement agreement is with Teva, Allergan, CVS, and
Walgreens. Participation in the settlement agreement removes the City’s
right to take individual legal action against any of the participating
companies.
There are several legal actions taken against pharmaceutical companies
and retailers (pharmacies) which had a large role in creating the opioid
crisis.
The State of Michigan is participating in settlements with Teva, Allergan,
CVS, and Walmart. Because the state is participating, local units have the
option to participate as well and we have until Tuesday, April 18 to opt in.
If we opt in we will receive a portion of the state’s settlement dollars
related to this action. We do not have exact estimates of dollars the City
will receive related to this settlement round.
A few items to note:
- Settlement dollars can only be used for specific opioid related uses (an
attachment follows the settlement documents with those approved uses –
mostly related to treatment and services for those suffering from opioid
addiction)
- Participation takes away the City’s ability to take legal action against
the participating companies
STAFF RECOMMENDATION: To approve participation in the national
opioid settlement as presented by the State of Michigan with Teva,
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Allergan, CVS, and Walgreens and authorize the City Manager to sign all
related documents.
Action No. 2023-51
Motion by: Commissioner St.Clair
Second by: Commissioner Ramsey
To approve participation in the national opioid settlement as presented by
the State of Michigan with Teva, Allergan, CVS, and Walgreens and
authorize the City Manager to sign all related documents.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
Emory
Absent (1): Commissioner Hood
MOTION PASSES (6 to 0)
8. Public Hearings
9. Unfinished Business
10. New Business
10.a Non-union employee insurance premiums - City Manager
Traditionally (and per all 5 union contracts) employees paid 10% of their
health benefits (after 2017 this included three components Health
Insurance, Co-insurance and Deductibles). At some point an error in the
calculation occurred and employees began paying more than 10%. The
unions brought this to our attention in early 2023 and the insurance
contributions have been corrected for the unions (as it’s a negotiated
benefit we cannot divert from this percent). Now the Commission needs to
decide how to handle non-union employees’ contributions which
traditionally have been the same as union employees.
Starting in 2017 the City began using three different factors to determine
employee contributions to their insurance premiums (a percent of actual
monthly premiums and a percent of City Paid Benefits (co-insurance &
deductibles)). Prior to 2017 just insurance premiums were used as a
factor. This change was made because of cost increases in co-insurance
and deductibles.
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Sometime after 2017 a calculation error occurred and employee’s
contributions increased above the 10% level. Technically, this is ok for
non-union employees as the Commission can set the non-union insurance
contributions at any rate it desires. However, traditionally, the insurance
contributions have been the same across all employee classes. Staff is
recommending that non-union employees be brought into line with union
employees and contribute 10% toward the total cost of their health
insurance (including co-insurance & deductibles). For the balance of the
current plan year, this will cost the City about an additional $12,000 in
health benefit costs (this is union and non-union employees). For future
years, we’ll budget correctly for the adjustment.
Another consideration this brings up, does the City refund to non-union
employees’ overpayments of health insurance contributions for the same
time period as we were required to do for union employees? (Going back
to Jan. 1, 2020.) We do not have an exact number on what this
overpayment back to employees would be, but in general would be at
most $3,100 for the three years of overpayments per employee. This
would be for a family plan; single and double refunds would be less. The
reason we don’t have a hard number on this is because the finance
department has to go employee by employee to calculate the individual
overpayments.
STAFF RECOMMENDATION: To change non-union staff contributions for
insurance to 10% inclusive of actual health care premiums and City Paid
Benefits of co-insurance and deductibles.
Action No. 2023-52 (A)
Motion by: Commissioner St.Clair
Second by: Commissioner Ramsey
To change non-union staff contributions for insurance to 10% inclusive of
actual health care premiums and City Paid Benefits of co-insurance and
deductibles.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
Emory
Absent (1): Commissioner Hood
MOTION PASSES (6 to 0)
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10.b Climate Action - City Manager
A Climate Action resolution to drive City policy on this topic.
Earlier this year the Commission asked staff to draft a Climate Action
resolution that would direct City staff and departments regarding climate
change. This resolution sets out broad guidelines for staff to operate under
to impact the City’s (municipal corporation’s) carbon footprint with the
objective of becoming carbon neutral by 2040.
STAFF RECOMMENDATION: To approve the City of Muskegon’s Climate
Action Resolution with the objective of measuring and reducing the City’s
carbon footprint and authorize the Mayor and Clerk to sign.
Action No. 2023-52(B)
Motion by: Commissioner Ramsey
Second by: Commissioner Emory
To approve the City of Muskegon’s Climate Action Resolution with the
objective of measuring and reducing the City’s carbon footprint and
authorize the Mayor and Clerk to sign.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
Emory
Absent (1): Commissioner Hood
MOTION PASSES (6 to 0)
10.c Amendment to the zoning ordinance, carriage house requirements -
Planning - 2ND READING REQUIRED
Staff initiated request to amend the form-based code section of the zoning
ordinance to allow carriage houses with only a one-story minimum
requirement and only a 20-foot depth requirement.
Carriage houses are currently required to be two stories and have a
minimum depth of 30 feet.
The Planning Commission recommended approval of the amendments by
a 6-1 vote at their March 16 meeting.
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STAFF RECOMMENDATION: To approve the requested amendments to
allow carriage houses with only a one-story minimum requirement and
only a 20-foot depth requirement
Action No. 2023-52(C)
Motion by: Commissioner Ramsey
Second by: Commissioner St.Clair
To approve the requested amendments to allow carriage houses with only
a one-story minimum requirement and only a 20-foot depth requirement.
Ayes: (5): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Ramsey, and Commissioner Emory
Nays: (1): Vice Mayor German
Absent (1): Commissioner Hood
MOTION PASSES (5 to 1)
11. Any Other Business
11.a City Manager Comments
City Manager, Jonathan Seyferth, explained that the podium was in the
center of the meeting room on a trial basis. Manager Seyferth also
informed the Commission that he and City Clerk, Ann Meisch, would be
representing the city in attending the funeral of Dennis Stepke, former City
Manager for the City of North Muskegon.
11.b Pubic Safety Director Update
Chief Kozal provided an update on the investigation of a recent shooting
resulting in the tragic loss of life in the city. He went on to inform the
Commission of the efforts the department is taking to try to reduce gun
violence.
12. Public Comment on Non-Agenda items
Public comments were received.
13. Closed Session
13.a Pending Litigation
Action No. 2023-53
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Motion by: Commissioner St.Clair
Second by: Vice Mayor German
To go in to closed session to consult with our attorneys regarding
settlement strategy in connection with Loretta Lyons versus Muskegon
Police Department Officers Richard McCabe, James Gust, Tony Fountain,
and Doug Conrad, United States District Court Western District of
Michigan, Case number 22-CV-0167 because an open meeting would
have a detrimental financial effect on the settlement position of the City of
Muskegon and defendants.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
Emory
Absent (1): Commissioner Hood
MOTION PASSES (6 to 0)
Action No. 2023-53
Motion by: Commissioner St.Clair
Second by: Commissioner Emory
To return to open session.
MOTION PASSES
Action No. 2023-53
Motion by: Commissioner Ramsey
Second by: Commissioner Emory
To follow the advice from counsel regarding settlement of Lyons v.
McCabe, et al. lawsuit pending in Federal Court in the Western District of
Michigan.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
Emory
Absent (1): Commissioner Hood
MOTION PASSES (6 to 0)
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14. Adjournment
The City Commission meeting adjourned at 7:35 p.m.
_________________________
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
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